Hindustan Times ·
‘Very positive step’: PhonePe, MobiKwik co-founders welcome UPI MDR charges
While some criticised the MDR charges on UPI transactions, many welcomed the move saying it was much needed.
As debate around UPI MDR transaction charges grows, industry leaders are now weighing in with their opinions. While some have criticised the move, many have welcomed it saying it was much needed.
Rallying behind those supporting the charges, MobiKwik co-founder Upasana Taku, hailed the move as a “very positive step” that will help make the payments ecosystem more sustainable as rising infrastructure costs have put pressure on banks and payment companies.
Taku said that with the rise of Unified Payments Interface, the cost of maintaining the infrastructure has increased, with the burden falling on banks and payment companies to support those costs.
"It is a very positive step for India. UPI completed 10 years this year, and because of UPI, digital payments have scaled massively in India, with almost everyone using them. But as UPI has grown, the cost of maintaining the infrastructure has also increased, and banks and payment companies have struggled to support those costs. So, this new direction is very positive for the payments industry, banks, and payment companies,” Taku told news agency ANI.
She explained that the change does not affect customers as there are no charges on person-to-person transactions, adding that even small merchants whose total monthly sales are around ₹1 lakh, remain exempted.
“The charge applies to large merchants where there are high volumes of payments—for example, booking a flight ticket, shopping on Amazon, or buying expensive items at a mall. For these large merchants, the UPI charge will be 0.4%, which is still much lower than the 1.6–1.8% typically charged for credit-card transactions.”